Quote Originally Posted by David Merrill View Post
I keep thinking this is one of the more productive threads on StSC. Does anybody know of any new Memorandums?
It appears that the Treasury's position on redeeming FRNs has changed. See its link below, and notice its excerpt below, especially the first sentence of the last paragraph:

https://www.treasury.gov/resource-ce...al-tender.aspx

What are Federal Reserve notes and how are they different from United States notes?

Federal Reserve notes are legal tender currency notes. The twelve Federal Reserve Banks issue them into circulation pursuant to the Federal Reserve Act of 1913. A commercial bank belonging to the Federal Reserve System can obtain Federal Reserve notes from the Federal Reserve Bank in its district whenever it wishes. It must pay for them in full, dollar for dollar, by drawing down its account with its district Federal Reserve Bank.

Federal Reserve Banks obtain the notes from our Bureau of Engraving and Printing (BEP). It pays the BEP for the cost of producing the notes, which then become liabilities of the Federal Reserve Banks, and obligations of the United States Government.

Congress has specified that a Federal Reserve Bank must hold collateral equal in value to the Federal Reserve notes that the Bank receives. This collateral is chiefly gold certificates and United States securities. This provides backing for the note issue. The idea was that if the Congress dissolved the Federal Reserve System, the United States would take over the notes (liabilities). This would meet the requirements of Section 411, but the government would also take over the assets, which would be of equal value. Federal Reserve notes represent a first lien on all the assets of the Federal Reserve Banks, and on the collateral specifically held against them.

Federal Reserve notes are not redeemable in gold, silver or any other commodity, and receive no backing by anything. This has been the case since 1933. The notes have no value for themselves, but for what they will buy. In another sense, because they are legal tender, Federal Reserve notes are "backed" by all the goods and services in the economy.
Then see “Commodity” definition below:
https://www.merriam-webster.com/dictionary/commodity



Now, if one cannot redeem FRNs anymore for anything per above stated policy, is that not in violation of 12 USC 411 and Section 16 of the Federal Reserve Act?

Is that not also in violation of Public Policy (Public Res. 73-10, 48 Stat 112) by demanding a particular KIND of currency for payment of obligations?

If now one can only "promise to pay" all obligations with only one KIND of currency (FRNs), then why not use this same KIND of currency (a promise to pay) to "pay" all obligations, following this same stated Treasury policy on non-redemption?

When the Messiah paid the tax in Mt 17:27, did He tender a coin with Caesar's image on it, in accord with His decision in Mt 22:21?

Likewise, should we simply tender currency that bears a "promise to pay" image, in accord with this system's monetary policy and instruments?